Steemit how can this thing be workable long term?

[CoinHoarder]

If you think 11.11% inflation is "hyperinflation" and unsustainable, please tell me which cryptocurrency you support then? Why are you here? They all are inflationary. Singling out Steem for something all cryptocurrencies do is easy. Misleading, sure, but easy.

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[1714856542]

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[iamnotback]

this anouncement that they got hacked is gonna steem down the price fast...red dildos to come ))

The downward price will remind those who converted to SP, that they need 2 years to remove their investment.  

Those who invest and don't convert to SP, are losing 0.19% per day due to debasement.

The problem with Steemit is they have no income model, thus once the price is not going up, there is no valuation where it has an P/E ratio. And the system is designed to incentivize cashing out. I just don't see where the buying demand will come from except for a bubble while the price is moving up fast. There is no incentive to HODL this token.

[albert11]

If you think 11.11% inflation is "hyperinflation" and unsustainable, please tell me which cryptocurrency you support then? Why are you here? They all are inflationary. Singling out Steem for something all cryptocurrencies do is easy. Misleading, sure, but easy.

I never said that. Stop being such a lying little bitch and answer my above question instead.

[CoinHoarder]

If you think 11.11% inflation is "hyperinflation" and unsustainable, please tell me which cryptocurrency you support then? Why are you here? They all are inflationary. Singling out Steem for something all cryptocurrencies do is easy. Misleading, sure, but easy.

I never said that. Stop being such a lying little bitch and answer my above question instead.

Exactly. You can't answer that. Exactly my point. FUD on brother.

Let me dig through your posting history and show you how the Cryptos you support are "hyper inflating". Brb

[albert11]

If you think 11.11% inflation is "hyperinflation" and unsustainable, please tell me which cryptocurrency you support then? Why are you here? They all are inflationary. Singling out Steem for something all cryptocurrencies do is easy. Misleading, sure, but easy.

I never said that. Stop being such a lying little bitch and answer my above question instead.

Exactly. You can't answer that. Exactly my point. FUD on brother.

Let me dig through your posting history and show you how the Cryptos you support are "hyper inflating". Brb

Perfect example of how you try to derail the discussion every time


Steem power inflation is 11% as long as the price of steem doesn't drop which won't happen with a 100% inflation yearly rate.

[iamnotback]

You are wasting your time making a group to vote for each other. You can at most get 7.5% of your SP (Steam Power) holdings back as rewards+payouts (on average) per year.

The rep power of your group is limited to your aggregate SP holdings. So even if you vote for each other in a perfect way (and this is complex to explain how to do due to numerous factors), then you will not on average get more than 7.5% per annum ROI. Of course not counting up or down votes you might get from others.

And holding SP has a huge risk, because you can't cash it out except over a 2 year period. Thus you risk losing all your SP in a declining price spiral.

this anouncement that they got hacked is gonna steem down the price fast...red dildos to come ))

The downward price will remind those who converted to SP, that they need 2 years to remove their investment. 

Those who invest and don't convert to SP, are losing 0.19% per day due to debasement.

The problem with Steemit is they have no income model, thus once the price is not going up, there is no valuation where it has an P/E ratio. And the system is designed to incentivize cashing out. I just don't see where the buying demand will come from except for a bubble while the price is moving up fast. There is no incentive to HODL this token.

If one is holding SP, you are I suppose betting that Steemit will manage some transition either to be acquired by another social network at some valuation per signed up user, or that Steemit will be able to develop an income model. We've seen that estimates of revenue per user from advertising for Facebook average around $15 per user per year.

So with a million signed up users, this will be $15 million annual income from advertising, so with a 20 P/E ratio then roughly a $300 million market cap (7.5% x $300m = $15 million divided by million users = $15 per user per year in payouts+curator rewards). At 3000 signups per day, they project a million signups (costing $10 per signup at least not including payouts) within 4 months.

But it is also not clear what the retention rate is given users on average won't earn that much from the site, and especially after the number of bloggers reach million users with only a $300 million market cap. In other words, at some realistic P/E ratio, then the payouts have to drop dramatically which means the usership might not be sticky, which then means the market cap valuation must be lower. And that begins the downward spiral because as market cap falls, then payouts fall, so usership should fall. Circling the toilet bowl all the way down.

Does anyone see any way this outcome can be averted? The math seems to show there is no way this can work out.

I am not an early adopter actually. I just started using Steemit 6 days ago: https://steemit.com/@coinhoarder

I don't care if people buy Steem or not. In fact, I suggest that you don't.... I sure didn't buy any STEEM.

I made posts and upvoted posts to earn what I have in my account, and I suggest you guys do the same too. It is easy money... I made about $115 so far.

So $20 per day incentivizes you to spend some of your time on that site. How many minutes a day you spend to earn that $20? (Readers note that he is a college student)

Will you stay when that drops to $20 per year per my calculations above?

[magicalacademy]

I ll tell you in a simple way why it does not protect you.

When you inject more steem into the system it makes your money worth less

No it does not, and this is the source of your confusion.

Let's use another example here. I have 10 coins, you have 10 coins. Now we create 20 coins out of thin air (100% inflation!) and give you 10 and me 10. Has anything changed here? No.

As I said earlier, this is a stock split dynamic, and does not change anyone's purchasing power, despite that scary "Inflation!" word.

Steem is a little bit more complicated than this, but not much. Until you understand how stock splits work and why the "inflation" created by stock splits is only an accounting adjustment and has no economic relevance, you will never understand Steem.

What's the benefit of having multiple account's with Steemit and transferring Steem Power between accounts ?

E.G. https://steemit.com/@smooth , @smooth-a, @smooth-b, @smooth-c, @smooth-d, @smooth-e, @smooth.witness?

Smooth seems to have found a way to game the system

Look at his balance https://steemit.com/@smooth/transfers

He already owns $ 5 Millions at today's market price. Insane.

[iamnotback]

I ll tell you in a simple way why it does not protect you.

When you inject more steem into the system it makes your money worth less

No it does not, and this is the source of your confusion.

Let's use another example here. I have 10 coins, you have 10 coins. Now we create 20 coins out of thin air (100% inflation!) and give you 10 and me 10. Has anything changed here? No.

As I said earlier, this is a stock split dynamic, and does not change anyone's purchasing power, despite that scary "Inflation!" word.

Steem is a little bit more complicated than this, but not much. Until you understand how stock splits work and why the "inflation" created by stock splits is only an accounting adjustment and has no economic relevance, you will never understand Steem.

What's the benefit of having multiple account's with Steemit and transferring Steem Power between accounts ?

E.G. https://steemit.com/@smooth , @smooth-a, @smooth-b, @smooth-c, @smooth-d, @smooth-e, @smooth.witness?

Smooth seems to have found a way to game the system

Look at his balance https://steemit.com/@smooth/transfers

He already owns $ 5 Millions at today's market price. Insane.

He acquired nearly 1% back during the "sneaky mine" phase. You can understand why he wasn't willing to attack this coin the way he normally attacks pump and dump scams. That $millions bought his "I am not omniscient about the potential future not being a disaster" attitude.

We are all human and affected by our vested interests. He will have his chance to accuse me of similar when I launch my CC project.

Yet I will be argue that mine has a fundamentally valid future. I look forward to the debates about my project!

[magicalacademy]

I ll tell you in a simple way why it does not protect you.

When you inject more steem into the system it makes your money worth less

No it does not, and this is the source of your confusion.

Let's use another example here. I have 10 coins, you have 10 coins. Now we create 20 coins out of thin air (100% inflation!) and give you 10 and me 10. Has anything changed here? No.

As I said earlier, this is a stock split dynamic, and does not change anyone's purchasing power, despite that scary "Inflation!" word.

Steem is a little bit more complicated than this, but not much. Until you understand how stock splits work and why the "inflation" created by stock splits is only an accounting adjustment and has no economic relevance, you will never understand Steem.

What's the benefit of having multiple account's with Steemit and transferring Steem Power between accounts ?

E.G. https://steemit.com/@smooth , @smooth-a, @smooth-b, @smooth-c, @smooth-d, @smooth-e, @smooth.witness?

Smooth seems to have found a way to game the system

Look at his balance https://steemit.com/@smooth/transfers

He already owns $ 5 Millions at today's market price. Insane.

He acquired nearly 1% back during the "sneaky mine" phase. You can understand why he wasn't willing to attack this coin the way he normally attacks pump and dump scams. That $millions bought his "I am not omniscient about the potential future not being a disaster" attitude.

Wow! Do you think he would jump of a bridge for steems?

[iamnotback]

He acquired nearly 1% back during the "sneaky mine" phase. You can understand why he wasn't willing to attack this coin the way he normally attacks pump and dump scams. That $millions bought his "I am not omniscient about the potential future not being a disaster" attitude.

Wow! Do you think he would jump of a bridge for steems?

No. He is balancing his rationality with his vested interest. He hasn't suddenly turned into a pumper of shitcoins. He has a valid point that we can't precisely know the plans Steemit Inc. has for morphing the future of this project.

But I don't even see what the revenue plan could be  

I am hoping for some analysis from smooth on the possible revenue scheme that doesn't make the math so horrible as I showed.

[magicalacademy]

He acquired nearly 1% back during the "sneaky mine" phase. You can understand why he wasn't willing to attack this coin the way he normally attacks pump and dump scams. That $millions bought his "I am not omniscient about the potential future not being a disaster" attitude.

Wow! Do you think he would jump of a bridge for steems?

No. He is balancing his rationality with his vested interest. He hasn't suddenly turned into a pumper of shitcoins. He has a valid point that we can't precisely know the plans Steemit Inc. has for morphing the future of this project.

But I don't even see what the revenue plan could be  

I am hoping for some analysis from smooth on the possible revenue scheme that doesn't make the math so horrible as I showed.

To me, steem sounds a little bit too good to be true. Ya know like Santa pay you a visit everyday kinda thing. I wish the steem god could make money rain tho.

Why I am not investing in steem is because the whole thingy makes my money look cheap. Why would I invest my pay cheque into steem when i can make thousands by posting a photo of my dog or vacation?

[iamnotback]

He acquired nearly 1% back during the "sneaky mine" phase. You can understand why he wasn't willing to attack this coin the way he normally attacks pump and dump scams. That $millions bought his "I am not omniscient about the potential future not being a disaster" attitude.

Wow! Do you think he would jump of a bridge for steems?

No. He is balancing his rationality with his vested interest. He hasn't suddenly turned into a pumper of shitcoins. He has a valid point that we can't precisely know the plans Steemit Inc. has for morphing the future of this project.

But I don't even see what the revenue plan could be  

I am hoping for some analysis from smooth on the possible revenue scheme that doesn't make the math so horrible as I showed.

To me, steem sounds a little bit too good to be true. Ya know like Santa pay you a visit everyday kinda thing. I wish the steem god could make money rain tho.

Why I am not investing in steem is because the whole thingy makes my money look cheap. Why would I invest my pay cheque into steem when i can make thousands by posting a photo of my dog or vacation?

Good point!

How can smooth feel there is any meritocracy in Altcoin land, when he can earn $millions just from mining a "sneaky mine" and no real work nor innovation was accomplished. Any way I am not communist, therefor I salute his gaming of the sneaking mine and earning himself $millions.

Of course Steemit can't work out, because we can't give away for free what isn't free. Someone has to pay. If you invest into SP, you will be paying through your nose for Dan's pyramid scheme.

So many people can create a clone of a blogging site. Hell I could do that within a couple of months with PHP and SQL. That doesn't justify $millions in profit. There is nothing that was invented that requires a block chain. Everything they are doing in Steemit could be done with a corporate database. After all, they will need to make an income model and it is being run as a corporation any way, with 80% of the tokens was originally held by the CEO of Steemit Inc at the launch.

[magicalacademy]

He acquired nearly 1% back during the "sneaky mine" phase. You can understand why he wasn't willing to attack this coin the way he normally attacks pump and dump scams. That $millions bought his "I am not omniscient about the potential future not being a disaster" attitude.

Wow! Do you think he would jump of a bridge for steems?

No. He is balancing his rationality with his vested interest. He hasn't suddenly turned into a pumper of shitcoins. He has a valid point that we can't precisely know the plans Steemit Inc. has for morphing the future of this project.

But I don't even see what the revenue plan could be  

I am hoping for some analysis from smooth on the possible revenue scheme that doesn't make the math so horrible as I showed.

To me, steem sounds a little bit too good to be true. Ya know like Santa pay you a visit everyday kinda thing. I wish the steem god could make money rain tho.

Why I am not investing in steem is because the whole thingy makes my money look cheap. Why would I invest my pay cheque into steem when i can make thousands by posting a photo of my dog or vacation?

Good point!

How can smooth feel there is any meritocracy in Altcoin land, when he can earn $millions just from mining a "sneaky mine" and no real work nor innovation was accomplished. Any way I am not communist, therefor I salute his gaming of the sneaking mine and earning himself $millions.

Of course Steemit can't work out, because we can't give away for free what isn't free. Someone has to pay. If you invest into SP, you will be paying through your nose for Dan's pyramid scheme.

So many people can create a clone of a blogging site. Hell I could do that within a couple of months with PHP and SQL. That doesn't justify $millions in profit. There is nothing that was invented that requires a block chain. Everything they are doing in Steemit could be done with a corporate database. After all, they will need to make an income model and it is being run as a corporation any way, with 80% of the tokens was originally held by the CEO of Steemit Inc at the launch.

You are right, there will always be victims in this kinda free money scheme.

How much do they own now u know?    I was reading the update, sounds like the steem team welcoms with open arms FBI cooperation lol

[CoinHoarder]

Sorry.. I got sidetracked fixing my dad's riding mower. Another date tonight. I will be back tomorrow. 😊

[Rkana]

Is steem.it really profitable to Bloggers? 

[iamnotback]

Smooth seems to have found a way to game the system

Look at his balance https://steemit.com/@smooth/transfers

He already owns $ 5 Millions at today's market price. Insane.

He acquired nearly 1% back during the "sneaky mine" phase. You can understand why he wasn't willing to attack this coin the way he normally attacks pump and dump scams. That $millions bought his "I am not omniscient about the potential future not being a disaster" attitude.

Btw, smooth is cashing out roughly $50,000 per week. (assuming your $5m valuation of his SP is correct)

Is that a meritocracy  

You can see why he would have an incentive to not speak about how it will be a disaster for those who invest in SP now (requires a 2 year lock up cashed out over 104 weeks), while he is cashing out every week. Chaching. Fools please buy Steemit and give your money to smooth.

[magicalacademy]

Is steem.it really profitable to Bloggers? 

From what i have seen so far, yes it is. Buying steem power tho could end up being a terrible idea, even more so if steem team has a fat steem stash that they could sell while you are left holding the bag with your steem power locked monies.

[X-ray]

Is steem.it really profitable to Bloggers? 

it is if you just go writing on steemit nor to your blog because your blog can't be linked into steemit,the thing is you just write and make your article popular and then earning,that simple

[magicalacademy]

Smooth seems to have found a way to game the system

Look at his balance https://steemit.com/@smooth/transfers

He already owns $ 5 Millions at today's market price. Insane.

He acquired nearly 1% back during the "sneaky mine" phase. You can understand why he wasn't willing to attack this coin the way he normally attacks pump and dump scams. That $millions bought his "I am not omniscient about the potential future not being a disaster" attitude.

Btw, smooth is cashing out roughly $50,000 per week. (assuming your $5m valuation of his SP is correct)

Is that a meritocracy  

You can see why he would have an incentive to not speak about how it will be a disaster for those who invest in SP now (requires a 2 year lock up cashed out over 104 weeks), while he is cashing out every week. Chaching. Fools please buy Steemit and give your money to smooth.

My thoughts exactly, people buying steem are magicians they are turning fake monies into real monies, not to their advantage tho!

[bones261]

Unless I missed something, I'm surprised no one mentioned that every 32 million blocks, they do a "reverse split" where they convert 10 tokens back to 1.
Not sure if this scheme will be around that long to see the final results of this. I admit it, I gave Steem a try yesterday. It took me hours to have to scan the whole block chain since the bootstrap file that I downloaded didn't work. Then I spent hours mining with no luck at all. (Not surprised since my rig is old and I throttled to only 2 cores to prevent overheating.) Then suddenly, the network went down at block 3,202,672. Now I can't get the miner to start up again. Looks like I am going to have to rescan the entire bloated blockchain again. I'm not going to bother. Moving on.
I'll dink around the web page a little. Maybe upvote a few posts here and there. Amazing, I tried Steem for a whole day and it already pissed me off. My troll mode has just switched on. Now, I'll have to try to find good material in the 42 page white paper I skimmed through.